Samsung head tells employees to brace for stiff competition, weak economy this year

Samsung recently warned employees at its South Korea headquarters that the company will face stiff competition amid a weak economy this year. “The global economy’s low-growth trend will continue and uncertainty surrounding the business environment won’t be easily removed,” Samsung Chairman Lee Kun Hee told his employees according to Bloomerg. The company had a solid 2011, when it sold more than 300 million cell phones for the first time ever. Analysts are also worried about the situation; Park Hyun, an analyst with Tong Yang Securities Inc., said Samsung’s performance is uncertain for 2012. “Potential demand may be there, but whether it will materialize totally depends on the macroeconomic situation,” Hyun explained. Tech isn’t the only industry that’s affected by the economy in South Korea — auto makers are also bracing themselves. “We should make our corporate culture more open, flexible and innovative.” Chung Mong Koo, chairman of Hyundai, also said that he believes the auto industry will also slow this year.

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